Category:

Dateline:

Public Company Information:

NASDAQ:

ALXN

BOSTON--(BUSINESS WIRE)--Alexion
Pharmaceuticals, Inc. (NASDAQ:ALXN) today announced financial
results for the first quarter of 2019. Total revenues in the first
quarter were $1,140.4 million, a 23 percent increase compared to the
same period in 2018. The negative impact of foreign currency on total
revenues year-over-year was 1 percent, or $12.3 million, inclusive of
hedging activities. On a GAAP basis, diluted EPS in the quarter was
$2.61, a 135 percent increase versus the prior year. Non-GAAP diluted
EPS for the first quarter of 2019 was $2.39, a 42 percent increase
versus the first quarter of 2018.

"We had a great start to 2019, with a strong launch in ULTOMIRIS' first
full quarter since FDA approval. We've also made significant progress
executing and expanding our pipeline. This progress includes three
business development deals, multiple filings under regulatory review and
having begun dosing patients in two new ULTOMIRIS Phase 3 programs,"
said Ludwig Hantson, Ph.D., Chief Executive Officer of Alexion. "We look
forward to continuing to build on our momentum as the year progresses,
further growing our four durable franchises in hematology/nephrology,
neurology, metabolics and FcRn."

First Quarter 2019 Financial Highlights

Total net product sales were $1,140.2 million in the first quarter of
2019, compared to $930.4 million in the first quarter of 2018.

GAAP cost of sales was $85.8 million, compared to $91.6 million in the
first quarter of 2018. Non-GAAP cost of sales was $82.1 million,
compared to $83.0 million in the first quarter of 2018.

GAAP R&D expense was $195.9 million, compared to $176.6 million in the
first quarter of 2018. Non-GAAP R&D expense was $159.4 million,
compared to $161.6 million in the first quarter of 2018.

GAAP SG&A expense was $281.5 million, compared to $257.1 million in
the first quarter of 2018. Non-GAAP SG&A expense was $243.7 million,
compared to $220.4 million in the first quarter of 2018.

GAAP income tax benefit was $46.1 million, compared to income tax
expense of $102.5 million in the first quarter of 2018. GAAP income
tax benefit for the first quarter 2019 includes deferred tax benefits
of $95.7 million and $30.3 million associated with a tax election
related to intellectual property and release of an existing valuation
allowance, respectively. Non-GAAP income tax expense was $100.9
million, compared to $68.6 million in the first quarter of 2018.

GAAP diluted EPS was $2.61, compared to $1.11 in the first quarter of
2018. GAAP diluted EPS for the first quarter 2019 includes deferred
tax benefits of $95.7 million and $30.3 million associated with a tax
election related to intellectual property and release of an existing
valuation allowance, respectively. Non-GAAP diluted EPS was $2.39,
compared to $1.68 in the first quarter of 2018.

Research and Development

PHASE
3

SOLIRIS - Neuromyelitis Optica Spectrum Disorder (NMOSD): In
February 2019, Alexion announced
that the U.S. Food and Drug Administration (FDA) granted Priority
Review for SOLIRIS in NMOSD and set a Prescription Drug User Fee Act
(PDUFA) action date of June 28, 2019. Alexion has filed for regulatory
approval in the European Union (EU) and Japan, and orphan drug
priority review has been granted in Japan. These filings are based on
previously announced
results from the Phase 3 PREVENT study, in which 97.9 percent of
patients with anti-aquaporin-4 (AQP4) auto antibody-positive NMOSD who
received SOLIRIS on top of stable standard-of-care therapy were
relapse free at 48 weeks compared to 63.2 percent of patients who
received placebo.

ULTOMIRIS - Paroxysmal Nocturnal Hemoglobinuria (PNH):
Applications for approval in the EU and Japan are currently under
review. In addition, a Phase 3 study of ULTOMIRIS in children and
adolescents with PNH is underway.

ULTOMIRIS- Atypical Hemolytic Uremic
Syndrome (aHUS): In April 2019, Alexion submitted an application
in the U.S. for the approval of ULTOMIRIS in patients with aHUS. The
filing was based on previously announced
positive topline results from a Phase 3 study of ULTOMIRIS in
complement inhibitor naïve patients with aHUS. Alexion plans to file
for regulatory approval in the EU and Japan in 2019. In addition, a
Phase 3 study of ULTOMIRIS in adolescents and children with aHUS is
underway.

ULTOMIRIS- Subcutaneous: Enrollment
and dosing are underway in a single, PK-based Phase 3 study of
ULTOMIRIS delivered subcutaneously once per week to support
registration in PNH and aHUS. Data are expected in early 2020.

ULTOMIRIS- Generalized Myasthenia Gravis
(gMG): In the first quarter of 2019, Alexion initiateda
Phase 3 study of ULTOMIRIS in gMG.

ULTOMIRIS- Neuromyelitis Optica Spectrum
Disorder (NMOSD): Alexion plans to initiate a Phase 3 study of
ULTOMIRIS in NMOSD by the end of 2019.

ALXN1840 (WTX101) - Wilson Disease: Enrollment and dosing are
underway in a Phase 3 study of ALXN1840 (WTX101) in Wilson disease, a
rare genetic disorder with devastating hepatic and neurological
consequences. The study is now powered for superiority versus
standard-of-care therapy. ALXN1840 is a first-in-class oral
copper-binding agent with a unique mechanism of action to bind serum
copper and promote its removal from the liver.

PHASE 1/2

ALXN1830 (SYNT001): Alexion plans to initiate two Phase 2/3
trials of ALXN1830 (SYNT001) in late 2019 or early 2020 - one in warm
autoimmune hemolytic anemia (WAIHA) and one in gMG.

Caelum Biosciences - CAEL-101- Light
Chain (AL) Amyloidosis: In January 2019, Alexion entered into a collaboration
with Caelum Biosciences to develop CAEL-101 for AL amyloidosis, a rare
systemic disorder that causes misfolded immunoglobulin light chain
protein to build up in and around tissues, resulting in progressive
and widespread organ damage. CAEL-101 is a first-in-class amyloid
fibril targeted therapy designed to improve organ function by reducing
or eliminating amyloid deposits in patients with AL amyloidosis. In a
Phase 1a/1b study, CAEL-101 demonstrated improved organ function,
including cardiac and renal function, in patients with relapsed and
refractory AL amyloidosis. Pending regulatory feedback, a Phase 2/3
study investigating CAEL-101 as an add-on to current standard-of-care
therapy is planned to begin in early 2020.

Affibody AB - ABY-039: In March 2019, Alexion announced
a partnership with Affibody AB to co-develop ABY-039 for rare
Immunoglobulin G (IgG)-mediated autoimmune diseases. Pending relevant
regulatory approvals, the transaction is expected to close in the
second quarter of 2019. Currently in Phase 1 development, ABY-039 is a
bivalent antibody-mimetic that targets the neonatal Fc receptor
(FcRn). ABY-039 has been specifically designed to combine Affibody's
protein therapeutics platform (Affibody® molecules) and
Albumod™ technology to achieve a long half-life, which, along with its
small size provides the potential for less frequent, convenient,
at-home subcutaneous administration.

PRE-CLINICAL

ALXN1720: In March 2019, Alexion announced the development of
ALXN1720, a novel anti-C5 albumin-binding bi-specific mini-body that
binds and prevents activation of human C5. Alexion plans to initiate a
first-in-human study of ALXN1720 in late 2019.

Zealand Pharma A/S: In March 2019, Alexion began a collaboration
with Zealand Pharma A/S to discover and develop novel peptide
therapies for up to four targets in the complement pathway. Peptides
offer a number of advantages, including being highly selective and
potent, allowing low dosage volumes for ease of administration, and
having the potential to treat a broad range of complement-mediated
diseases.

Dicerna - GalXC™: Alexion is collaborating with Dicerna
Pharmaceuticals to jointly discover and develop up to four
subcutaneously delivered GalXC™ RNA interference (RNAi) candidates,
currently in pre-clinical development, for the treatment of
complement-mediated diseases.

Complement Pharma - CP010: Alexion is collaborating with
Complement Pharma to co-develop CP010, a pre-clinical C6 inhibitor
that has the potential to treat multiple neurological disorders.

2019 Financial Guidance

Alexion is increasing total revenues and EPS guidance. Full guidance
updates are outlined below.

Previous

Updated

Total revenues

$4,625 to $4,700 million

$4,675 to $4,750 million

SOLIRIS/ULTOMIRIS revenues

$3,970 to $4,020 million

$4,020 to $4,070 million

Metabolic revenues

$655 to $680 million

$655 to $680 million

R&D (% total revenues)

GAAP

17% to 18%

19% to 20%

Non-GAAP

16% to 17%

16% to 17%

SG&A (% total revenues)

GAAP

23% to 24%

23% to 24%

Non-GAAP

20% to 21%

20% to 21%

Operating margin

GAAP

36% to 43%

35% to 42%

Non-GAAP

54% to 55%

54% to 55%

Earnings per share

GAAP

$6.14 to $7.26

$6.76 to $7.96

Non-GAAP

$9.10 to $9.30

$9.25 to $9.45

Updated 2019 financial guidance assumes the following:

GAAP guidance reflects the financial impact of the announced
collaboration with Affibody.

Alexion’s financial guidance is based on current foreign exchange rates
net of hedging activities and does not include the effect of
acquisitions, license and collaboration agreements, intangible asset
impairments, litigation charges, changes in fair value of contingent
consideration or restructuring and related activity outside of the
previously announced activities that may occur after the issuance of
this press release.

Conference Call/Webcast Information:

Alexion will host a conference call/audio webcast to discuss the first
quarter 2019 results today at 8:00 a.m. Eastern Time. To participate in
the call, dial 866-762-3111 (USA) or 210-874-7712 (International),
conference ID 1692605 shortly before 8:00 a.m. Eastern Time. A replay of
the call will be available for a limited period following the call. The
audio webcast can be accessed on the Investor page of Alexion’s website
at: https://ir.alexion.com/.

About Alexion

Alexion is a global biopharmaceutical company focused on serving
patients and families affected by rare diseases through the discovery,
development and commercialization of life-changing therapies. As the
global leader in complement biology and inhibition for more than 20
years, Alexion has developed and commercializes two approved complement
inhibitors to treat patients with paroxysmal nocturnal hemoglobinuria
(PNH), as well as the first and only approved complement inhibitor to
treat atypical hemolytic uremic syndrome (aHUS) and anti-acetylcholine
receptor (AchR) antibody-positive generalized myasthenia gravis (gMG),
and is also developing it for patients with neuromyelitis optica
spectrum disorder (NMOSD). Alexion also has two highly innovative enzyme
replacement therapies for patients with life-threatening and ultra-rare
metabolic disorders, hypophosphatasia (HPP) and lysosomal acid lipase
deficiency (LAL-D). In addition, the company is developing several
mid-to-late-stage therapies, including a second complement inhibitor, a
copper-binding agent for Wilson disease and an anti-neonatal Fc receptor
(FcRn) antibody for rare Immunoglobulin G (IgG)-mediated diseases as
well as several early-stage therapies, including one for light chain
(AL) amyloidosis and a second anti-FcRn therapy. Alexion focuses its
research efforts on novel molecules and targets in the complement
cascade and its development efforts on the core therapeutic areas of
hematology, nephrology, neurology and metabolic disorders. Alexion has
been named to the Forbes list of the World’s Most Innovative
Companies seven years in a row and is headquartered in Boston,
Massachusetts’ Innovation District. The company also has offices around
the globe and serves patients in more than 50 countries. This press
release and further information about Alexion can be found at: www.alexion.com.

[ALXN-E]

Forward-Looking Statement

This press release contains forward-looking statements, including
statements related to: guidance regarding anticipated financial results
for 2019 (and the assumptions related to such guidance); the strength of
our business and continued growth; plans to expand the Company's
pipeline; Company's goal of continuing to build on momentum as the year
progresses; further future growth in the Company's four durable
franchises (hematology/nephrology, metabolics, neurology and FcRn);
plans to make future regulatory submissions/filings for approval of
certain of our products and product candidates, including SOLIRIS
(eculizumab) and ULTOMIRIS (ALXN1210/ravulizumab-cwvz), and the expected
timing related thereto, (as well as the expected timing of the receipt
of certain regulatory approvals to market a product); future plans for,
and the timing for, the commencement of future clinical trials and the
expected timing of the receipt of results of certain clinical trials and
studies; potential benefits of current products and products under
development and in clinical trials (including further extended dosing
intervals); Company’s plans to initiate proof-of-concept studies for
ULTOMIRIS in ALS and exploratory clinical study for ULTOMIRIS in PPMS;
the expected timing of the closing of the Affibody AB transaction; the
potential to treat a broad range of complement mediated diseases with
the product to be developed with Zealand Pharma A/S; and Alexion's
future clinical, regulatory, and commercial plans for ULTOMIRIS and
other product candidates.Forward-looking statements are subject
to factors that may cause Alexion's results and plans to differ
materially from those forward-looking statements, including for example:
our dependence on sales from our principal product (SOLIRIS); our
ability to facilitate the timely conversion of PNH patients (and any
future indications) from SOLIRIS to ULTOMIRIS; payer, physician and
patient acceptance of ULTOMIRIS as an alternative to SOLIRIS;
appropriate pricing for ULTOMIRIS; future competition from biosimilars
and novel products; decisions of regulatory authorities regarding the
adequacy of our research, marketing approval or material limitations on
the marketing of our products; delays or failure of product candidates
to obtain regulatory approval; delays or the inability to launch product
candidates due to regulatory restrictions, anticipated expense or other
matters; interruptions or failures in the manufacture and supply of our
products and our product candidates; failure to satisfactorily address
matters raised by the FDA and other regulatory agencies; results in
early stage clinical trials may not be indicative of full results or
results from later stage or larger clinical trials (or broader patient
populations) and do not ensure regulatory approval; the possibility that
results of clinical trials are not predictive of safety and efficacy and
potency of our products (or we fail to adequately operate or manage our
clinical trials) which could cause us to halt trials, delay or prevent
us from making regulatory approval filings or result in denial of
approval of our product candidates; unexpected delays in clinical
trials; unexpected concerns that may arise from additional data or
analysis obtained during clinical trials; future product improvements
may not be realized due to expense or feasibility or other factors;
uncertainty of long-term success in developing, licensing or acquiring
other product candidates or additional indications for existing
products; inability to complete planned acquisitions due to failure of
regulatory approval or material changes in target or otherwise;
inability to complete acquisitions and investments due to increased
competition for technology; the possibility that current rates of
adoption of our products are not sustained; the adequacy of our
pharmacovigilance and drug safety reporting processes; failure to
protect and enforce our data, intellectual property and proprietary
rights and the risks and uncertainties relating to intellectual property
claims, lawsuits and challenges against us (including intellectual
property lawsuits relating to ULTOMIRIS brought by third parties against
Alexion and inter partes review petitions submitted by third parties);
the risk that third party payors (including governmental agencies) will
not reimburse or continue to reimburse for the use of our products at
acceptable rates or at all; failure to realize the benefits and
potential of investments, collaborations, licenses and acquisitions; the
possibility that expected tax benefits will not be realized; assessment
of impact of recent accounting pronouncements; potential declines in
sovereign credit ratings or sovereign defaults in countries where we
sell our products; delay of collection or reduction in reimbursement due
to adverse economic conditions or changes in government and private
insurer regulations and approaches to reimbursement; uncertainties
surrounding legal proceedings, company investigations and government
investigations, including investigations of Alexion by the U.S.
Securities and Exchange Commission (SEC) and U.S. Department of Justice;
the risk that estimates regarding the number of patients with PNH, aHUS,
gMG, HPP and LAL-D and other future indications we are pursuing are
inaccurate; the risks of changing foreign exchange rates; risks relating
to the potential effects of the Company's restructuring; risks related
to the acquisition of Syntimmune and other companies and co-development
and collaboration efforts; and a variety of other risks set forth from
time to time in Alexion's filings with the SEC, including but not
limited to the risks discussed in Alexion's Annual Report on Form 10-K
for the period ended December 31, 2018 and in our other filings with the
SEC. Alexion disclaims any obligation to update any of these
forward-looking statementsto reflect events or circumstances
after the date hereof, except when a duty arises under law.

In addition to financial information prepared in accordance with
GAAP, this press release also contains non-GAAP financial measures that
Alexion believes, when considered together with the GAAP information,
provide investors and management with supplemental information relating
to performance, trends and prospects that promote a more complete
understanding of our operating results and financial position during
different periods. The non-GAAP results exclude the impact of the
following GAAP items (see reconciliation tables below for additional
information): share-based compensation expense, fair value adjustment of
inventory acquired, amortization of purchased intangible assets, changes
in fair value of contingent consideration, restructuring and related
expenses, upfront payments related to licenses and collaborations,
acquired in-process research and development assets, impairment of
intangible assets, change in value of strategic equity investments,
litigation charges, gain or loss on sale of a business or asset and
certain adjustments to income tax expense. These non-GAAP financial
measures are not intended to be considered in isolation or as a
substitute for, or superior to, the financial measures prepared and
presented in accordance with GAAP, and should be reviewed in conjunction
with the relevant GAAP financial measures. Please refer to the attached
Reconciliations of GAAP to non-GAAP Financial Results and GAAP to
non-GAAP 2019 Financial Guidance for explanations of the amounts
adjusted to arrive at non-GAAP net income and non-GAAP earnings per
share amounts for the three month periods ended March 31, 2019 and 2018
and projected twelve months ending December 31, 2019.

(Tables Follow)

ALEXION PHARMACEUTICALS, INC.

TABLE 1: CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share amounts)

(unaudited)

Three months ended

March 31

2019

2018

Net product sales

$

1,140.2

$

930.4

Other revenue

0.2

0.5

Total revenues

1,140.4

930.9

Cost of sales

85.8

91.6

Operating expenses:

Research and development

195.9

176.6

Selling, general and administrative

281.5

257.1

Amortization of purchased intangible assets

80.0

80.0

Change in fair value of contingent consideration

(28.7

)

52.7

Restructuring expenses

9.1

5.5

Total operating expenses

537.8

571.9

Operating income

516.8

267.4

Other income and expense:

Investment income

42.5

105.8

Interest expense

(19.9

)

(24.1

)

Other income and (expense)

2.4

2.5

Income before income taxes

541.8

351.6

Income tax (benefit) expense

(46.1

)

102.5

Net income

$

587.9

$

249.1

Earnings per common share

Basic

$

2.63

$

1.12

Diluted

$

2.61

$

1.11

Shares used in computing earnings per common share

Basic

223.8

222.1

Diluted

225.5

223.7

ALEXION PHARMACEUTICALS, INC.

TABLE 2: RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(in millions, except per share amounts)

(unaudited)

Three months ended

March 31

2019

2018

GAAP net income

$

587.9

$

249.1

Before tax adjustments:

Cost of sales:

Share-based compensation

3.7

3.3

Restructuring related expenses (1)

—

5.3

Research and development expense:

Share-based compensation

15.3

14.9

Upfront payments related to licenses and collaborations (2)

21.2

—

Restructuring related expenses (1)

—

0.1

Selling, general and administrative expense:

Share-based compensation

37.7

33.1

Restructuring related expenses (1)

—

3.6

Litigation charges

0.1

—

Amortization of purchased intangible assets

80.0

80.0

Change in fair value of contingent consideration (3)

(28.7

)

52.7

Restructuring expenses (1)

9.1

5.5

Investment income:

Change in value of strategic equity investments (4)

(33.8

)

(100.8

)

Other income:

Restructuring related expenses (1)

—

(0.1

)

Adjustments to income tax expense (5)

(147.0

)

33.9

Non-GAAP net income

$

545.5

$

380.6

GAAP earnings per common share - diluted

$

2.61

$

1.11

Non-GAAP earnings per common share - diluted

$

2.39

$

1.68

Shares used in computing diluted earnings per common share (GAAP)

225.5

223.7

Shares used in computing diluted earnings per common share
(non-GAAP)

228.1

226.4

(1) The following table summarizes the total restructuring and related
expenses recorded by type of activity and the classification within the
Reconciliation of GAAP to non-GAAP Financial Results:

Three months ended March 31,

Three months ended March 31,

2019

2018

Employee Separation Costs

Asset-Related Charges

Other

Total

Employee Separation Costs

Asset-Related Charges

Other

Total

Cost of sales

$

—

$

—

$

—

$

—

$

—

$

5.3

$

—

$

5.3

Research anddevelopment

—

—

—

—

—

0.1

—

0.1

Selling, general andadministrative

—

—

—

—

—

3.6

—

3.6

Restructuring expense

9.1

—

—

9.1

1.0

—

4.5

5.5

Other (income) expense

—

—

—

—

—

—

(0.1

)

(0.1

)

$

9.1

$

—

$

—

$

9.1

$

1.0

$

9.0

$

4.4

$

14.4

(2)

We recorded an upfront license payment of $21.2 million in
connection with an agreement that we entered into with Zealand
Pharma A/S in March 2019.

(3)

For the three months ended March 31, 2019 and 2018, changes in the
fair value of contingent consideration reflect the impact of changes
in the expected timing of payments of contingent consideration.
Changes in the fair value of contingent consideration for the three
months ended March 31, 2018 also included the impact of changes in
the probability of achieving the contingent milestones.

(4)

Our investments include strategic equity investments in Moderna
Therapeutics, Inc., Dicerna Pharmaceuticals, Inc. and Zealand Pharma
A/S which are recorded at fair value. During the three months ended
March 31, 2019, we recognized an unrealized gain of $33.8 million in
investment income to adjust our strategic equity investments to fair
value. During the three months ended March 31, 2018, we recognized
an unrealized gain of $100.8 million to adjust our investment in
Moderna Therapeutics, Inc. to fair value.

(5)

Alexion's non-GAAP income tax expense for the three months ended
March 31, 2019 and 2018 excludes the tax effect of pre-tax
adjustments to GAAP profit. Non-GAAP income tax expense for the
three months ended March 31, 2019 also excludes certain one-time tax
benefits of $95.7 million and $30.3 million associated with a tax
election made with respect to intellectual property of Wilson
Therapeutics AB and a release of an existing valuation allowance,
respectively. Non-GAAP income tax expense for the three months ended
March 31, 2018 also excludes adjustments to provisional estimates of
the impact of Tax Cuts and Jobs Act we recorded in fourth quarter
2017.

ALEXION PHARMACEUTICALS, INC.

TABLE 3: RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL GUIDANCE

(in millions, except per share amounts and percentages)

(unaudited)

Twelve months ending

December 31, 2019

Low

High

GAAP net income

$

1,532

$

1,804

Before tax adjustments:

Share-based compensation

256

239

Upfront payments related to licenses and collaborations

46

46

Acquired in-process research and development

240

—

Amortization of purchased intangible assets

320

320

Change in fair value of contingent consideration

(15

)

(15

)

Restructuring expenses

25

20

Change in value of strategic equity investments

(34

)

(34

)

Adjustments to income tax expense

(252

)

(216

)

Non-GAAP net income

$

2,118

$

2,164

Diluted GAAP earnings per common share

$

6.76

$

7.96

Diluted non-GAAP earnings per common share

$

9.25

$

9.45

Operating expense and margin (% total revenues)

GAAP research and development expense

20

%

19

%

Share-based compensation

2

%

2

%

Upfront payments related to licenses and collaborations

1

%

1

%

Non-GAAP research and development expense

17

%

16

%

GAAP selling, general and administrative expense

24

%

23

%

Share-based compensation

3

%

3

%

Non-GAAP selling, general and administrative expense

21

%

20

%

GAAP operating margin

35

%

42

%

Share-based compensation

5

%

5

%

Upfront payments related to licenses and collaborations

1

%

1

%

Acquired in-process research and development

5

%

—

%

Amortization of purchased intangible assets

7

%

7

%

Change in fair value of contingent consideration

0

%

0

%

Restructuring expenses

1

%

0

%

Non-GAAP operating margin

54

%

55

%

Income tax expense (% of income before income taxes)

GAAP income tax expense

9

%

7

%

Tax effect of pre-tax adjustments to GAAP net income and other
one-time itemsassociated with intellectual property

7

%

7

%

Non-GAAP income tax expense

16

%

14

%

Amounts may not foot due to rounding.

ALEXION PHARMACEUTICALS, INC.

TABLE 4: NET PRODUCT SALES BY GEOGRAPHY

(in millions)

(unaudited)

Three months ended

March 31

2019

2018

SOLIRIS

United States

$

463.7

$

336.0

Europe

264.5

250.8

Asia Pacific

100.9

85.5

Rest of World

132.9

127.8

Total Soliris

$

962.0

$

800.1

ULTOMIRIS

United States

$

24.6

$

—

Europe

—

—

Asia Pacific

—

—

Rest of World

—

—

Total Ultomiris

$

24.6

$

—

STRENSIQ

United States

$

99.5

$

89.2

Europe

17.5

14.0

Asia Pacific

9.9

5.7

Rest of World

3.2

1.8

Total Strensiq

$

130.1

$

110.7

KANUMA

United States

$

13.8

$

11.9

Europe

6.3

5.9

Asia Pacific

0.8

1.0

Rest of World

2.6

0.8

Total Kanuma

$

23.5

$

19.6

Net Product Sales

United States

$

601.6

$

437.1

Europe

288.3

270.7

Asia Pacific

111.6

92.2

Rest of World

138.7

130.4

Total Net Product Sales

$

1,140.2

$

930.4

ALEXION PHARMACEUTICALS, INC.

TABLE 5: CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)

(unaudited)

March 31

December 31

2019

2018

Cash and cash equivalents

$

1,544.8

$

1,365.5

Marketable securities

110.3

198.3

Trade accounts receivable, net

1,016.3

922.3

Inventories

482.2

472.5

Prepaid expenses and other current assets (1)

497.0

426.4

Property, plant and equipment, net (1)

1,095.7

1,471.5

Intangible assets, net

3,560.8

3,641.3

Goodwill

5,037.4

5,037.4

Right of use operating assets (1)

192.8

—

Other assets

462.3

396.7

Total assets

$

13,999.6

$

13,931.9

Accounts payable and accrued expenses

$

669.8

$

698.2

Revolving credit facility

—

250.0

Current portion of long-term debt

126.5

93.8

Current portion of contingent consideration

97.6

97.6

Other current liabilities (1)

49.9

34.4

Long-term debt, less current portion

2,470.0

2,501.7

Contingent consideration

154.5

183.2

Facility lease obligations (1)

—

361.0

Deferred tax liabilities

306.1

391.1

Noncurrent operating lease liabilities (1)

150.8

—

Other liabilities (1)

267.8

155.6

Total liabilities

4,293.0

4,766.6

Total stockholders' equity (1)

9,706.6

9,165.3

Total liabilities and stockholders' equity

$

13,999.6

$

13,931.9

(1)

In February 2016, the Financial Accounting Standards Board issued a
new standard that requires lessees to recognize leases on-balance
sheet. We adopted the new standard on January 1, 2019 using the
modified retrospective approach. The March 31, 2019 condensed
consolidated balance sheet is presented under the new standard,
while the December 31, 2018 condensed consolidated balance sheet is
not adjusted and continues to be reported under the accounting
standards in effect for that period. Upon adoption of the new lease
standard, we derecognized $472.8 million of property, plant and
equipment and other assets and $372.2 million of facility lease
obligations associated with previously existing build-to-suit
arrangements which resulted in a decrease of $90.3 million to
retained earnings, net of tax. In addition, we capitalized $326.1
million and $255.3 million of right of use assets and lease
liabilities, respectively, within our condensed consolidated balance
sheet upon adoption.